Non admissibility of input tax credit on revision of return under earlier law after GST

Suggestions on GST Acts (July 2017) by Institute of Chartered Accountants of India

47. Non-admissibility of input tax credit on revision of return furnished under earlier law

Section 142(9) of CGST Act, 2017 provides that if a return furnished under the earlier law is revised and if, pursuant to such revision, any amount is found to be recoverable from the taxable person, then the same shall be recovered as an arrear of tax under this Act and the amount so recovered shall not be admissible as input tax credit under this Act.

Issue

There may be cases where return filed under earlier law is revised voluntarily by the taxable person to pay due tax under forward or reverse charge. Inadmissibility of such tax payment as input tax credit under GST regime will result in undue hardship to the taxable person whereas the same is allowed under current law.

Suggestion

It is suggested that the input tax credit be allowed on the basis of valid documentary evidences and other conditions as may be prescribed, where tax has been paid and return revised voluntarily under the earlier law.

Read ICAI Suggestions on GST Act to Govt : July 2017

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